AnywhereRemodeling
Content
This sample business plan was created for Palo Alto Software, Inc. by:
Business Networks PO Box 175 Walterville, OR 97489-0175 800-525-1009 Ext 14 www.businessnetworks.com
Anywhere Remodeli Remodeling ng
Confidentiality Confidentiality Agreeme nt
The undersigned undersigned reader acknowledges t hat the inform information provided by ________ ____________ ________ ________ ________ _____ _ in this business business plan is is c onfidential; onfidential; therefore, t herefore, reader agrees agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________ ____________ ________ ________ ________ _____. _. Upon request, this document is to be immediately returned to _________________________. ________ ____________ ________ _______ ___ Signature ________ ____________ ________ _______ ___ Name (typed or printed) ________ ____________ ________ _______ ___ Date This is a business plan. It does not imply an offering of securities.
Confidentiality Confidentiality Agreeme nt
The undersigned undersigned reader acknowledges t hat the inform information provided by ________ ____________ ________ ________ ________ _____ _ in this business business plan is is c onfidential; onfidential; therefore, t herefore, reader agrees agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________ ____________ ________ ________ ________ _____. _. Upon request, this document is to be immediately returned to _________________________. ________ ____________ ________ _______ ___ Signature ________ ____________ ________ _______ ___ Name (typed or printed) ________ ____________ ________ _______ ___ Date This is a business plan. It does not imply an offering of securities.
Table of Contents 1.0 Executive Summary Summary............................................................................... ............................................................................... ..............................................1 1.1 Objectives Objectives ..................................................... ..................................................................................... ................................ ..............................................1 1.2 Mission... Mission.......................................................................................... ....................................................................................... ..............................................1 Chart: Chart: Highlights................................................. Highlights ........................................................................ ....................... ..............................................2 1.3 Keys to Success Success .......................................................................... .......................................................................... ..............................................2 2.0 Company Summary Summary............................................................................... ............................................................................... ..............................................3 2.1 Company Ownership Company Ownership ..................................................... ................................................................... .............. ..............................................3 2.2 Company History.......................................................................... History.......................................................................... ..............................................3 Table: Past Performance Performance .................................................... ......................................................... ..... ..............................................4 Chart: Past Performance Performance ......................................................... ......................................................... ..............................................5 3.0 Products and Services Services.......................................................................... .......................................................................... ..............................................5 4.0 Market Analy A nalysis sis Summary Summary................................................. .................................................................... ................... ..............................................5 4.1 Market Market Segmentation .................................................... .................................................................. .............. ..............................................6 Table: Market Market Analysis ............................................... ............................................................. .............. ..............................................6 Chart: Market Market Analysis Analysis (Pie)................................................ (Pie) .................................................... .... ..............................................6 4.2 Target Market Segment Strategy ............................................... Strategy ............................................... ..............................................7 4.3 Service Business Analysis.......................................................... Analysis.......................................................... ..............................................7 4.3.1 Competitio Comp etition n and and Buying Patterns.................................. Patterns.................................. ..............................................7 5.0 Strategy and Implementation Implementation Summary .............................................. Summary .............................................. ..............................................7 5.1 Sales Sales Strategy....................................................... Strategy.............................................................................. ....................... ..............................................7 5.1.1 5.1.1 Sales Forecast.................................................. Forecast ................................................................ .............. ..............................................8 Table: Sales Forecast ..................................................... Forecast ..................................................... ..............................................8 Chart: Sales Monthly........................................................ Monthly........................................................ ..............................................9 Chart: Sales Sales by Year ........................................................ ........................................................ ..............................................9 5.2 Marketing Strategy Marketing Strategy ....................................................................... ....................................................................... ...........................................10 5.3 Competitive Edge Edge ...........................................10
Table of Contents 8.6 Business Ratios............................................................................ ...........................................19 Table: Ratios .............................................................................. ...........................................20 8.7 Long-ter m Plan.............................................................................. ...........................................21 Table: Sales Forecast................................................................................. ..............................................1 Table: Personnel.......................................................................................... ..............................................1 Table: General Assumptions ...................................................................... ..............................................2 Table: Profit and Loss ...............................................................................................................................3 Table: Cash Flow .......................................................................................................................................5 Table: Balance Sheet ................................................................................................................................6 Table: Long-term........................................................................................................................................7
Anywhere Remodeling, Inc. 1.0 Executive Summary Anywhere Remodeling, Inc. will change its foc us to differentiate ourselves f rom fly-by- night contractors and improve its sales and customer service functions. The goal is to increase sales to more than $2 million in three years, while also improving the gross profit and working capital. We w ant t o bec ome known as t he best quality remodeling company around. This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments in our local market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability. This plan includes this summary, and chapters on the company, products and services, market foc us, ac tion plans and forec asts, management team, and financial plan, management and working capital.
1.1 Objectives 1. 2. 3.
Sales increasing to $2 million by June Year 5. Improve net profitability t o 12% by end of fiscal year Year 5. Provide 10% of gross sales for Owner and 10% of gross sales for company.
1.2 Mission Anywhere Remodeling is a full service remodeling company that is devoted to building the
Anywhere Remodeling, Inc.
1.3 Keys to Success Marketing: Creating a desire for our services above all competitors is a key to our continued succ ess, as well as c reating the perception that we are the top of the line. Craftsmanship: No matter how good the marketing program is, poor-quality work will destroy
Anywhere Remodeling, Inc. 2.0 Company Summary Anywhere Remodeling, Inc. started as a proprietorship originally named Right Stuff Construction in August 1989, serving Anywhere, World. Its c ustomers pay 10- 15% extra to feel "taken c are of." Their need to trust a contractor allows them to feel comfortable with slightly higher than average prices.
2.1 Company Ownership Anywhere Remodeling, Inc. is an S corporation owned in majority by its founder and president, Bob Hammer. There are two part owners: Steve Field & Bill Sales. Neither owns more than 15%, but both are active participants in management decisions.
2.2 Company History Anywhere Remodeling, Inc. was founded in 1989 as a sole proprietorship registered in Anywhere, World as Right St uff Construction, ow ned and operated by Bob Hammer. It w as a originally a handyman business specializing in house painting. After seeing an influx of competition in response to the recent housing crisis, Bob decided that the best way t o adapt t o the market was t o take advantage of the f act that new building permits are down. The theory is that because new home construction is down, those people who have the extra money to spend will be more likely to hold on to their assets and remodel existing homes rather than go out and buy a new home.
Anywhere Remodeling, Inc. Table: Past Performance Past Performance Sales Gross Margin
FY 2006 $250,000 $62,500
FY 2007 $450,000 $112,500
FY 2008 $750,000 $187,500
Gross Margin % Operating Expenses Collection Period (days)
25.00% $187,500 438
25.00% $337,500 326
25.00% $562,500 472
FY 2006
FY 2007
FY 2008
$39,748
$44,165
$183,428
$24 0,0 00 $8,938 $288,686
$43 0,0 00 $9,931 $484,096
$73 5,00 0 $31,380 $949,808
Long-term Assets Long-term Assets
$63,040
$70,045
$145,879
Accum ul ate d Dep recia ti on Total Long-term Assets
$28 ,67 5 $34,365
$31 ,861 $38,184
$56 ,87 9 $89,000
$323,051
$522,280
$1,038,808
Accou nts Payab le Current Borrowing Other Current Liabilities (interest free)
$42 ,73 1 $38,458 $0
$53 ,000 $24,965 $9,995
$69 ,72 0 $0 $0
Total Current Liabilities
$81,189
$87,960
$69,720
Balance Sheet
Current Assets Cash Accou nts Recei vabl e Other Current Assets Total Current Assets
Total Assets Current Liabilities
Anywhere Remodeling, Inc.
3.0 Products and Services Anywhere Remodeling, Inc. is a full-service remodeling contractor. At present we do mostly high-end, single room, kitchen/bath and whole house remodels. It is our philosophy that we can offer a quality product in a timely fashion giving the customer one-on-one service.
Anywhere Remodeling, Inc. 4.1 Market Segmentation In an era of dec reasing residential property values and relatively stable rates of personal income growth, Anywhere Remodeling, Inc. is foc using on two se gments of t he residential remodeling market: 1) Neighborhoods where homeowners have achieved success in t heir careers and have room in their budget for investment in their homes, but are not eager to incur a much higher mortgage payment by selling their house and 'buying up.' [Such targeted neighborhoods have housing stoc k with room to expand and are deemed to be worth t he upgrade expenditures.] 2) Run-down neighborhoods that have been targeted by c ommunity decision-makers for renewal. About 20% of Anywhere's overall volume consists of remodeling projects for businesses within the community areas being revitalized.
Table: Market Analysis Market Analysis 2008
2009
2010
2011
2012
Potential Customers Small growth Moderate growth
Growth 5% 7%
500,000 500,000
525,000 535,000
551,250 572,450
578,813 612,522
607,754 655,399
CAGR 5.00% 7.00%
Moderate - Large growth Large growth Total
10% 15% 9.45%
500,000 500,000 2,000,000
550,000 575,000 2,185,000
605,000 661,250 2,389,950
665,500 760,438 2,617,273
732,050 874,504 2,869,707
10.00% 15.00% 9.45%
Anywhere Remodeling, Inc. 4.2 Target Market Segment Strategy Anywhere Remodeling's targeted market groups were c hosen bec ause of the long-term potential for continued sales. Assuming high quality work and effective word-of-mouth marketing, t he t argeted, potent ially upgradeable, neighborhoods afford a c ontinuing supply of work to do. The business remodels, while providing a smaller portion of the firm's income, offer an important opportunity to build relationships and generate trust with business owners and managers who have homes in the targeted ‘upgradeable' homes.
4.3 Service Business Analysis As a whole, the building industry is a very fragmented industry. Despite large homebuilders, no single company has as much as a 2% market share. The remodeling industry is even more diluted with only a handful of companies in the nation showing annual sales in excess of $10 million. Under the standard definition, all remodelers fall into the category of a small business.
4.3.1 Competition and Buying Patterns The remodeling market is made up of potential customers who weigh three competing values: Price, Quality and Service. There is a saying that a remodeling company can deliver any two of those values. A large portion of the potential customers are asking for quality and service, and then go shopping for price. These customers are extremely difficult t o work for and make a
Anywhere Remodeling, Inc. 1. Anywhere Remodeling needs t o sell the company, not the price. 2. Anywhere has to sell its quality and service. The actual remodeling is like the razor, and the support, service, design and hand holding are the razor blades. We need to serve our customers with what they really need. The Yearly Total Sales chart summarizes an ambitious sales forecast. Anywhere expects sales to increase significantly from $750,000 last year.
5.1.1 Sales Forecast The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 chart. Total sales will increase substantially over the next several years.
Table: Sales Forecast Sales Forecast FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Sales Commercial
$131,791
$145,000
$165,000
$170,000
$180,000
Residential Other Total Sales
$1,188,614 $7,998 $1,328,403
$1,350,000 $1,903 $1,496,903
$1,500,000 $1,998 $1,666,998
$1,650,000 $2,098 $1,822,098
$1,800,000 $2,202 $1,982,202
Direct Cost of Sales Materials
FY 2009 $225,828
FY 2010 $254,473
FY 2011 $283,390
FY 2012 $309,757
FY 2013 $336,974
Sub Contractor Costs Permits & Licensing
$464,941 $3,385
$523,916 $3,554
$583,449 $3,732
$637,734 $3,919
$693,771 $4,115
Anywhere Remodeling, Inc.
Anywhere Remodeling, Inc. 5.2 Marketing Strategy The marketing strategy is the core of the main strategy: 1. 2. 3.
Emphasize quality and service. Build a relationship business- -t reat the customers like members of the family. Take care of the customers for the rest of their life.
5.3 Competitive Edge Anywhere Remodeling, Inc.'s competitive edge is its reputation in the community. Over the past five years, Anywhere has won a number of awards for quality and design, both nat ionally and locally. Its satisfied customer base continues to expand and spread the word.
5.4 Milestones The following table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.
Table: Milestones
Anywhere Remodeling, Inc. The key to the website strategy will be combining a very well designed front end, with a back end c apable of rec ording leads and proposal requests.
7.0 Management Summary Anywhere Remodeling is a company that desires to be of service to others. Its whole existence is keyed to helping people who have need t o improve the quality of t heir life. Anywhere encourages team work and cooperation in helping the customer. The company is very loyal to its employees and provides them with the security and satisfaction to know that they are the business and that without them the company would not exist.
7.1 Personnel Plan The Personnel Plan reflects the need to bolster our capabilities to match our positioning. Our total head-count should increase to 12 this first year, and to 17 by the third year. This reflects a ~5% growth per year.
Table: Personnel Personnel Plan Labor Prod. Manager Design Prod Mgr (office) S l ( l i d/d
)
FY 2009 $179,829 $37,839 $10,649
FY 2010 $179,829 $37,839 $10,649
FY 2011 $189,294 $39,831 $11,209
FY 2012 $199,257 $41,927 $11,799
FY 2013 $209,744 $44,134 $12,420
$9,281 $8 555
$9,281 $8 555
$9,770 $9 005
$10,284 $9 479
$10,825 $9 978
Anywhere Remodeling, Inc. · ·
·
A slow-growth economy, without major recession. There are no unforeseen c hanges in tec hnology t o make our services immediately obsolete (very unlikely). We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.
Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other
FY 2009 1 7.00%
FY 2010 2 7.00%
FY 2011 3 7.00%
FY 2012 4 7.00%
FY 2013 5 7.00%
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
Anywhere Remodeling, Inc. 8.2 Break-even Analysis The break-even analysis can be found below.
Table: Break-even Analysis
Anywhere Remodeling, Inc. 8.3 Projected Profit and Loss The most important assumption in the Projected Profit and Loss statement is the gross margin, which is supposed to increase, up quite a bit from the last year. The increase in gross margin is based on changing our sales mix due to increased target marketing based on 5% assumptions bet ween y ears. Month-by-month assumptions for profit and loss are included in the appendices.
Anywhere Remodeling, Inc. Table: Profit and Loss Pro Forma Profit and Loss FY 2009 $1,328,403 $715,885
FY 2010 $1,496,903 $805,135
FY 2011 $1,666,998 $895,541
FY 2012 $1,822,098 $978,094
FY 2013 $1,982,202 $1,063,327
Other Costs of Goods Total Cost of Sales
$0 $715,885
$0 $805,135
$0 $895,541
$0 $978,094
$0 $1,063,327
Gross Margin Gross Margin %
$612,517 46.11%
$691,768 46.21%
$771,457 46.28%
$844,004 46.32%
$918,875 46.36%
Expenses Payroll
$366,810
$421,654
$443,846
$467,206
$491,796
$11 ,89 0 $8,856 $13,757
$7, 023 $9,322 $8,122
$7, 393 $9,813 $8,550
$7, 782 $10,329 $9,000
$8, 191 $10,873 $9,473
$2,244 $2,364 $2,100
$2,362 $2,488 $2,211
$2,486 $2,619 $2,327
$2,617 $2,757 $2,449
$2,755 $2,902 $2,578
$65,729 $3,880 ($204)
$52,152 $3,082 ($215)
$54,897 $3,244 ($226)
$57,786 $3,415 ($238)
$60,828 $3,595 ($250)
Tool Repair/Replacement Computer/Hardware/Software Consultants Dues/Sub/Licenses/Royalties/Trade Assoc
$2,760 $8,602 $2,840
$2,905 $6,836 $2,990
$3,058 $7,196 $3,147
$3,219 $7,574 $3,313
$3,389 $7,973 $3,487
Corp & Business Taxes Legal Expenses Accou nti ng Expen ses
$2,104 $1,309 $2, 331
$2,214 $1,378 $2, 453
$2,331 $1,451 $2, 582
$2,454 $1,527 $2, 718
$2,583 $1,608 $2, 861
$14,520 $1,137
$15,284 $1,197
$16,089 $1,260
$16,935 $1,326
$17,827 $1,396
Sales Direct Cost of Sales
Adve rtisin g Depreciation Marketing Bad Debts Donations Entertainment 50% Employee Benefits Equipment Buy/Rental Interest/Bank Charges
Rent of Office/Warehouse Space Repairs/Maintenance
Anywhere Remodeling, Inc.
Anywhere Remodeling, Inc. 8.4 Projected Cash Flow The cash flow depends on assumptions for payment days and accounts receivable management. The projected 75-day collection days is critical, and it is also reasonable.
Anywhere Remodeling, Inc. Table: Cash Flow Pro Forma Cash Flow FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Cash from Operations Cash Sales Cash from Receivables
$332,101 $1,500,397
$374,226 $1,093,388
$416,749 $1,220,682
$455,524 $1,339,614
$495,551 $1,458,822
Subtotal Cash from Operati ons
$1,832,498
$1,467,614
$1,637,432
$1,795,138
$1,954,373
Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free)
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $1,832,498
$0 $1,467,614
$0 $1,637,432
$0 $1,795,138
$0 $1,954,373
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
$366,810 $948,152 $1,314,962
$421,654 $1,049,306 $1,470,960
$443,846 $1,152,871 $1,596,716
$467,206 $1,258,223 $1,725,429
$491,796 $1,365,979 $1,857,775
Add it io nal Cash Spen t Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing Other Liabilities Principal Repayment
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Cash Received
Add it io nal Cash Recei ved
New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operati ons
Anywhere Remodeling, Inc. 8.5 Projected Balance Sheet The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations--as long as we can achieve our specific objectives.
Table: Balance Sheet Pro Forma Bal ance Sheet FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Current Assets Cash Accou nts Recei vabl e
$700,964 $23 0,9 04
$697,618 $26 0,1 93
$738,333 $28 9,7 60
$808,042 $31 6,7 19
$904,640 $34 4,5 49
Other Current Assets Total Current Assets
$31,380 $963,249
$31,380 $989,191
$31,380 $1,059,473
$31,380 $1,156,141
$31,380 $1,280,569
Long-term Assets Long-term Assets Accum ul ate d Dep recia ti on
$145,879 $65 ,73 5
$145,879 $75 ,05 7
$145,879 $84 ,87 0
$145,879 $95 ,19 9
$145,879 $10 6,0 72
$80,144 $1,043,393
$70,822 $1,060,013
$61,009 $1,120,482
$50,680 $1,206,821
$39,807 $1,320,376
Liabilities and Capital
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Current Liabilities Accou nts Payab le Current Borrowing Other Current Liabilities
$87 ,23 9 $0 $0
$86 ,15 5 $0 $0
$95 ,52 7 $0 $0
$10 4,1 22 $0 $0
$11 3,0 02 $0 $0
Assets
Total Long-term Assets Total Assets
Anywhere Remodeling, Inc. Table: Ratios Ratio Anal ysis FY 2009 77.12%
FY 2010 12.68%
FY 2011 11.36%
FY 2012 9.30%
22. 13% 3.01%
24. 55% 2.96%
25. 86% 2.80%
26. 24% 2.60%
26. 09% 2.38%
11. 37% 25.23%
92.32% 7.68% 100.00%
93.32% 6.68% 1 00.00%
94.56% 5.44% 1 00.00%
95.80% 4.20% 1 00.00%
96.99% 3.01% 1 00.00%
76.82% 23.18% 100.00%
8.36% 0.00%
8.13% 0.00%
8.53% 0.00%
8.63% 0.00%
8.56% 0.00%
44.21% 12.47%
Total Liabilities Net Worth
8.36% 91.64%
8.13% 91.87%
8.53% 91.47%
8.63% 91.37%
8.56% 91.44%
56.68% 43.32%
Percent of Sal es Sales Gross Margin
100.00% 46.11%
100.00% 46.21%
100.00% 46.28%
100.00% 46.32%
100.00% 46.36%
100.00% 16.88%
26.96% 0.8 7% -0.97%
27.77% 0.8 7% 1.58%
28.42% 0.8 6% 4.09%
13.06% 0.0 0% 5.69%
13.02% 0.0 0% 7.04%
5.45% 0.2 3% 0.91%
Sales Growth Percent of Total Assets Accou nts Recei vabl e Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities
Sel li ng, General & Administrati ve Expenses Adve rtisin g Exp enses Profit Before Interest and Taxes Main Ratios Current
FY 2013 Industry Profi le 8.79% -2.88%
11.04
11.48
11.09
11.10
11.33
1.59
Quick Total Debt to Total Assets Pre-tax Return on Net Worth
11.04 8.36% -1.35%
11.48 8.13% 2.42%
11.09 8.53% 6.65%
11.10 8.63% 9.40%
11.33 8.56% 11.56%
0.57 59.20% 1.93%
Pre-tax Return on Assets
-1.24%
2.23%
6.08%
8.59%
10.57%
4.72%
Anywhere Remodeling, Inc. 8.7 Long-term Plan The long-term plan is shown in the Appendix.
Appendix Table: Sales Forecast Sales Forecast Dec
Feb
Mar
$3,699
$5,780
$ 11,098
$16,416
$ 20,116
$19,884
$ 16,647
$12,486
$9,249
$6,705
$6,474
$76,879 $151 $80,729
$77,746 $151 $83,677
$89,884 $151 $101,133
$96,243 $151 $112,810
$101,156 $151 $121,423
$99,711 $151 $119,746
$109,827 $151 $126,625
$111,850 $2,900 $127,236
$119,075 $3,587 $131,911
$116,301 $151 $123,157
$116,532 $151 $123,157
Jan $13,724
Feb $14,225
Mar $17,193
Apr $19,178
May $20,642
Jun $20,357
Jul $21,526
Aug $21,630
Sep $22,425
Oct $20,937
Nov $20,937
$26,879 $282 $484
$28,255 $282 $509
$29,287 $282 $527
$35,397 $282 $637
$39,484 $282 $711
$42,498 $282 $765
$41,911 $282 $754
$44,319 $282 $798
$44,533 $282 $802
$46,169 $282 $831
$43,105 $282 $776
$43,105 $282 $776
$377
$385
$393
$401
$409
$417
$425
$434
$443
$452
$461
$470
$530 $161 $41,769
$530 $161 $43,846
$530 $161 $45,406
$530 $161 $54,601
$530 $161 $60,754
$530 $161 $65,295
$530 $161 $64,421
$530 $161 $68,050
$530 $161 $68,381
$530 $161 $70,850
$530 $161 $66,252
$530 $161 $66,261
Sales Commercial
$3,237
Residential Other Total Sales
$73,410 $151 $76,798
Direct Cost of Sales Materials
Dec $13,056
Sub Contractor Costs Permits & Licensing Sales Costs w/commision Warranties Trash Other Subtotal Direct Cost of Sales
Jan
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Table: Personnel Personnel Plan Labor Prod. Manager Design
Dec $14,986 $3,153
Jan $14,986 $3,153
Feb $14,986 $3,153
Mar $14,986 $3,153
Apr $14,986 $3,153
May $14,986 $3,153
Jun $14,986 $3,153
Jul $14,986 $3,153
Aug $14,986 $3,153
Sep $14,985 $3,154
Oct $14,985 $3,154
Nov $14,985 $3,154
$887
$887
$887
$887
$887
$887
$887
$888
$888
$888
$888
$888
$773 $712 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
Total People
12
12
12
12
1
12
12
12
12
12
12
12
Total Payroll
$30,566
$30,567
$30,567
$30,567
$30,567
$30,567
$30,567
$30,568
$30,568
Prod Mgr (office) Sales (salaried/draw) Office Owners
$30,568
$30,568
$30,568
Page 1
Appendix Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other
Dec 1 7.00%
Jan 2 7.00%
Feb 3 7.00%
Mar 4 7.00%
Apr 5 7.00%
May 6 7.00%
Jun 7 7.00%
Jul 8 7.00%
Aug 9 7.00%
Sep 10 7.00%
Oct 11 7.00%
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
Nov 12 7.00% 10.00% 25.00% 0
Page 2
Appendix Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Cost of Sales
Dec $76,798 $41,769
Jan $80,729 $43,846
Feb $83,677 $45,406
Mar $101,133 $54,601
Apr $112,810 $60,754
May $121,423 $65,295
Jun $119,746 $64,421
Jul $126,625 $68,050
Aug $127,236 $68,381
Sep $131,911 $70,850
Oct $123,157 $66,252
Nov $123,157 $66,261
Other Costs of Goods Total Cost of Sales
$0 $41,769
$0 $43,846
$0 $45,406
$0 $54,601
$0 $60,754
$0 $65,295
$0 $64,421
$0 $68,050
$0 $68,381
$0 $70,850
$0 $66,252
$0 $66,261
Gross Margin Gross Margin %
$35,029 45.61%
$36,883 45.69%
$38,271 45.74%
$46,532 46.01%
$52,056 46.14%
$56,128 46.22%
$55,325 46.20%
$58,575 46.26%
$58,855 46.26%
$61,061 46.29%
$56,905 46.21%
$56,896 46.20%
Expenses Payroll
$30,566
$30,567
$30,567
$30,567
$30,567
$30,567
$30,567
$30,568
$30,568
$30,568
$30,568
$30,568
Advertising
$556
$612
$673
$740
$814
$895
$985
$1,084
$1,192
$1,311
$1,442
$1,586
Depreciation Marketing
$738 $643
$738 $707
$738 $778
$738 $856
$738 $942
$738 $1,036
$738 $1,140
$738 $1,254
$738 $1,379
$738 $1,517
$738 $1,669
$738 $1,836
Bad Debts Donations Entertainment 50%
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
Employee Benefits Equipment Buy/Rental
$4,129 $244
$4,335 $256
$4,552 $269
$4,780 $282
$5,019 $296
$5,270 $311
$5,534 $327
$5,811 $343
$6,102 $360
$6,407 $378
$6,727 $397
$7,063 $417
Interest/Bank Charges
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
Tool Repair/Replacement Computer/Hardware/Software Consultants Dues/Sub/Licenses/Royalties/ Trade Assoc
$230 $541
$230 $568
$230 $596
$230 $626
$230 $657
$230 $690
$230 $724
$230 $760
$230 $798
$230 $838
$230 $880
$230 $924
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
Corp & Business Taxes Legal Expenses Accounting Expenses
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
Utilities Office Expenses Miscellaneous/Other
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
Liability Insurance Vehicle Expenses & Insurance Liability Insurance for employees Vehicle Expenses & Insurance
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
Rent of Office/Warehouse Space Repairs/Maintenance Communications
Page 3
Appendix Insurance - General (#43)
15%
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
Payroll Taxes
18%
$5,471
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$49,578
$49,944
$50,334
$50,750
$51,194
$51,668
$52,176
$52,719
$53,298
$53,918
$54,582
$55,293
($14,549) ($13,811)
($13,061) ($12,323)
($12,062) ($11,324)
($4,217) ($3,479)
$862 $1,600
$4,460 $5,198
$3,150 $3,888
$5,856 $6,594
$5,557 $6,295
$7,143 $7,881
$2,323 $3,061
$1,603 $2,341
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
($14,549) -18.94%
($13,061) -16.18%
($12,062) -14.42%
($4,217) -4.17%
$862 0.76%
$4,460 3.67%
$3,150 2.63%
$5,856 4.62%
$5,557 4.37%
$7,143 5.42%
$2,323 1.89%
Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
$0 $0 $1,603 1.30%
Page 4
Appendix Table: Cash Flow Pro Forma Cash Flow Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Cash from Operations Cash Sales Cash from Receivables
$19,200 $294,000
$20,182 $294,000
$20,919 $177,719
$25,283 $59,171
$28,203 $61,726
$30,356 $69,740
$29,937 $80,521
$31,656 $88,053
$31,809 $90,396
$32,978 $92,561
$30,789 $95,213
$30,789 $97,297
Subtotal Cash from Operations
$313,200
$314,182
$198,638
$84,454
$89,928
$100,096
$110,457
$119,709
$122,205
$125,539
$126,002
$128,086
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Cash Received
Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free)
0.00%
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets Sales of Long-term Assets
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $313,200
$0 $314,182
$0 $198,638
$0 $84,454
$0 $89,928
$0 $100,096
$0 $110,457
$0 $119,709
$0 $122,205
$0 $125,539
$0 $126,002
$0 $128,086
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
$30,566 $71,721 $102,288
$30,567 $60,124 $90,691
$30,567 $62,550 $93,117
$30,567 $64,755 $95,322
$30,567 $74,265 $104,832
$30,567 $80,810 $111,377
$30,567 $85,646 $116,213
$30,568 $85,430 $115,998
$30,568 $89,493 $120,061
$30,568 $90,475 $121,044
New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations
$30,568 $93,331 $123,899
$30,568 $89,552 $120,120
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Purchase Other Current Assets Purchase Long-term Assets Dividends
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Subtotal Cash Spent
$102,288
$90,691
$93,117
$95,322
$104,832
$111,377
$116,213
$115,998
$120,061
$121,044
$123,899
$120,120
Net Cash Flow Cash Balance
$210,912 $394,340
$ 223,491 $617,831
$ 105,522 $723,353
($10,868) $712,485
($14,904) $697,581
($11,281) $686,300
($5,756) $680,544
$3,710 $684,255
$2,144 $686,399
$4,495 $690,894
$2,103 $692,997
$7,967 $700,964
Page 5
Appendix Table: Balance Sheet Pro Forma Balance Sheet Assets
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Starting Balances
Curren t Assets Cash Accounts Receivable
$183,428 $735 ,000
$394,340 $498,59 9
$617,831 $265,14 5
$ 723,353 $150,18 4
$712,485 $166 ,863
$ 697,581 $189,74 4
$686,300 $211 ,071
$ 680,544 $220 ,360
$684,255 $227,27 6
$ 686,399 $232,30 7
$ 690,894 $238,67 9
$ 692,997 $235 ,834
$ 700,964 $230 ,904
Other Current Assets Total Current Assets
$31,380 $ 949 ,8 08
$31,380 $92 4,318
$31,380 $9 14,35 6
$31,380 $9 04,91 6
$31,380 $9 10 ,72 8
$31,380 $9 18,70 5
$31,380 $ 928 ,7 51
$31,380 $ 932 ,2 84
$31,380 $94 2,911
$31,380 $95 0,086
$31,380 $96 0,9 53
$31,380 $ 96 0,2 11
$31,380 $ 96 3,2 49
Long -term Assets Long-term Assets Accumulated Depr eciation
$145,879 $56,879
$145,879 $57,617
$145,879 $58,35 5
$145,879 $59,093
$145,879 $59,83 1
$145,879 $60,56 9
$145,879 $61,307
$145,879 $62,045
$145,879 $62,783
$145,879 $63,521
$145,879 $64,259
$145,879 $64,997
$145,879 $65,735
$89,000 $ 1,0 38 ,8 08
$88,262 $ 1,0 12 ,5 80
$87,524 $ 1,0 01 ,8 80
$86,786 $ 99 1,7 02
$86,048 $ 99 6,7 76
$85,310 $ 1,0 04 ,0 15
$84,572 $ 1,0 13 ,3 23
$83,834 $ 1,0 16 ,1 18
$83,096 $ 1,0 26 ,0 07
$82,358 $ 1,0 32 ,4 44
$81,620 $ 1,0 42 ,5 73
$80,882 $ 1,0 41 ,0 93
$80,144 $ 1,0 43 ,3 93
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Total Long-term Assets To ta l Asse ts Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities
$69,720 $0 $0
$58,041 $0 $0
$60,40 2 $0 $0
$62,286 $0 $0
$71,57 7 $0 $0
$77,95 5 $0 $0
$82,803 $0 $0
$82,448 $0 $0
$86,481 $0 $0
$87,360 $0 $0
$90,347 $0 $0
$86,543 $0 $0
$87,239 $0 $0
Subtotal Current Liabilities
$69,720
$58,041
$60,402
$62,286
$71,577
$77,955
$82,803
$82,448
$86,481
$87,360
$90,347
$86,543
$87,239
Long-term Liabilities Total Liabilities Paid-in Capital
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$69,720
$58,041
$60,402
$62,286
$71,577
$77,955
$82,803
$82,448
$86,481
$87,360
$0 $90,347
$0 $86,543
$0 $87,239
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
Retained Earnings
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
Earnings Total Capital
$0 $969,088
($14,549) $954,539
($27,610) $941,478
( $39,672) $929,416
($43,889) $925,199
( $43,027) $926,061
($38,567) $930,521
( $35,418) $933,670
($29,562) $939,526
( $24,004) $945,084
( $16,861) $952,227
( $14,538) $954,550
( $12,935) $956,153
$1,0 38,808
$1,012,5 80
$1,0 01,880
$991,702
$996,776
$1,0 04,015
$1,0 13,323
$1,0 16,118
$1,026,0 07
$1,032,4 44
$1,042,5 73
$1,041,0 93
$1,043,3 93
$969,088
$954,539
$941,478
$929,416
$925,199
$926,061
$930,521
$933,670
$939,526
$945,084
$952,227
$954,550
$956,153
Total Liabil itie s and Capital Net Worth
Page 6
Business Networks PO Box 175 Walterville, OR 97489-0175 800-525-1009 Ext 14 www.businessnetworks.com
Anywhere Remodeli Remodeling ng
Confidentiality Confidentiality Agreeme nt
The undersigned undersigned reader acknowledges t hat the inform information provided by ________ ____________ ________ ________ ________ _____ _ in this business business plan is is c onfidential; onfidential; therefore, t herefore, reader agrees agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________ ____________ ________ ________ ________ _____. _. Upon request, this document is to be immediately returned to _________________________. ________ ____________ ________ _______ ___ Signature ________ ____________ ________ _______ ___ Name (typed or printed) ________ ____________ ________ _______ ___ Date This is a business plan. It does not imply an offering of securities.
Confidentiality Confidentiality Agreeme nt
The undersigned undersigned reader acknowledges t hat the inform information provided by ________ ____________ ________ ________ ________ _____ _ in this business business plan is is c onfidential; onfidential; therefore, t herefore, reader agrees agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________ ____________ ________ ________ ________ _____. _. Upon request, this document is to be immediately returned to _________________________. ________ ____________ ________ _______ ___ Signature ________ ____________ ________ _______ ___ Name (typed or printed) ________ ____________ ________ _______ ___ Date This is a business plan. It does not imply an offering of securities.
Table of Contents 1.0 Executive Summary Summary............................................................................... ............................................................................... ..............................................1 1.1 Objectives Objectives ..................................................... ..................................................................................... ................................ ..............................................1 1.2 Mission... Mission.......................................................................................... ....................................................................................... ..............................................1 Chart: Chart: Highlights................................................. Highlights ........................................................................ ....................... ..............................................2 1.3 Keys to Success Success .......................................................................... .......................................................................... ..............................................2 2.0 Company Summary Summary............................................................................... ............................................................................... ..............................................3 2.1 Company Ownership Company Ownership ..................................................... ................................................................... .............. ..............................................3 2.2 Company History.......................................................................... History.......................................................................... ..............................................3 Table: Past Performance Performance .................................................... ......................................................... ..... ..............................................4 Chart: Past Performance Performance ......................................................... ......................................................... ..............................................5 3.0 Products and Services Services.......................................................................... .......................................................................... ..............................................5 4.0 Market Analy A nalysis sis Summary Summary................................................. .................................................................... ................... ..............................................5 4.1 Market Market Segmentation .................................................... .................................................................. .............. ..............................................6 Table: Market Market Analysis ............................................... ............................................................. .............. ..............................................6 Chart: Market Market Analysis Analysis (Pie)................................................ (Pie) .................................................... .... ..............................................6 4.2 Target Market Segment Strategy ............................................... Strategy ............................................... ..............................................7 4.3 Service Business Analysis.......................................................... Analysis.......................................................... ..............................................7 4.3.1 Competitio Comp etition n and and Buying Patterns.................................. Patterns.................................. ..............................................7 5.0 Strategy and Implementation Implementation Summary .............................................. Summary .............................................. ..............................................7 5.1 Sales Sales Strategy....................................................... Strategy.............................................................................. ....................... ..............................................7 5.1.1 5.1.1 Sales Forecast.................................................. Forecast ................................................................ .............. ..............................................8 Table: Sales Forecast ..................................................... Forecast ..................................................... ..............................................8 Chart: Sales Monthly........................................................ Monthly........................................................ ..............................................9 Chart: Sales Sales by Year ........................................................ ........................................................ ..............................................9 5.2 Marketing Strategy Marketing Strategy ....................................................................... ....................................................................... ...........................................10 5.3 Competitive Edge Edge ...........................................10
Table of Contents 8.6 Business Ratios............................................................................ ...........................................19 Table: Ratios .............................................................................. ...........................................20 8.7 Long-ter m Plan.............................................................................. ...........................................21 Table: Sales Forecast................................................................................. ..............................................1 Table: Personnel.......................................................................................... ..............................................1 Table: General Assumptions ...................................................................... ..............................................2 Table: Profit and Loss ...............................................................................................................................3 Table: Cash Flow .......................................................................................................................................5 Table: Balance Sheet ................................................................................................................................6 Table: Long-term........................................................................................................................................7
Anywhere Remodeling, Inc. 1.0 Executive Summary Anywhere Remodeling, Inc. will change its foc us to differentiate ourselves f rom fly-by- night contractors and improve its sales and customer service functions. The goal is to increase sales to more than $2 million in three years, while also improving the gross profit and working capital. We w ant t o bec ome known as t he best quality remodeling company around. This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments in our local market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability. This plan includes this summary, and chapters on the company, products and services, market foc us, ac tion plans and forec asts, management team, and financial plan, management and working capital.
1.1 Objectives 1. 2. 3.
Sales increasing to $2 million by June Year 5. Improve net profitability t o 12% by end of fiscal year Year 5. Provide 10% of gross sales for Owner and 10% of gross sales for company.
1.2 Mission Anywhere Remodeling is a full service remodeling company that is devoted to building the
Anywhere Remodeling, Inc.
1.3 Keys to Success Marketing: Creating a desire for our services above all competitors is a key to our continued succ ess, as well as c reating the perception that we are the top of the line. Craftsmanship: No matter how good the marketing program is, poor-quality work will destroy
Anywhere Remodeling, Inc. 2.0 Company Summary Anywhere Remodeling, Inc. started as a proprietorship originally named Right Stuff Construction in August 1989, serving Anywhere, World. Its c ustomers pay 10- 15% extra to feel "taken c are of." Their need to trust a contractor allows them to feel comfortable with slightly higher than average prices.
2.1 Company Ownership Anywhere Remodeling, Inc. is an S corporation owned in majority by its founder and president, Bob Hammer. There are two part owners: Steve Field & Bill Sales. Neither owns more than 15%, but both are active participants in management decisions.
2.2 Company History Anywhere Remodeling, Inc. was founded in 1989 as a sole proprietorship registered in Anywhere, World as Right St uff Construction, ow ned and operated by Bob Hammer. It w as a originally a handyman business specializing in house painting. After seeing an influx of competition in response to the recent housing crisis, Bob decided that the best way t o adapt t o the market was t o take advantage of the f act that new building permits are down. The theory is that because new home construction is down, those people who have the extra money to spend will be more likely to hold on to their assets and remodel existing homes rather than go out and buy a new home.
Anywhere Remodeling, Inc. Table: Past Performance Past Performance Sales Gross Margin
FY 2006 $250,000 $62,500
FY 2007 $450,000 $112,500
FY 2008 $750,000 $187,500
Gross Margin % Operating Expenses Collection Period (days)
25.00% $187,500 438
25.00% $337,500 326
25.00% $562,500 472
FY 2006
FY 2007
FY 2008
$39,748
$44,165
$183,428
$24 0,0 00 $8,938 $288,686
$43 0,0 00 $9,931 $484,096
$73 5,00 0 $31,380 $949,808
Long-term Assets Long-term Assets
$63,040
$70,045
$145,879
Accum ul ate d Dep recia ti on Total Long-term Assets
$28 ,67 5 $34,365
$31 ,861 $38,184
$56 ,87 9 $89,000
$323,051
$522,280
$1,038,808
Accou nts Payab le Current Borrowing Other Current Liabilities (interest free)
$42 ,73 1 $38,458 $0
$53 ,000 $24,965 $9,995
$69 ,72 0 $0 $0
Total Current Liabilities
$81,189
$87,960
$69,720
Balance Sheet
Current Assets Cash Accou nts Recei vabl e Other Current Assets Total Current Assets
Total Assets Current Liabilities
Anywhere Remodeling, Inc.
3.0 Products and Services Anywhere Remodeling, Inc. is a full-service remodeling contractor. At present we do mostly high-end, single room, kitchen/bath and whole house remodels. It is our philosophy that we can offer a quality product in a timely fashion giving the customer one-on-one service.
Anywhere Remodeling, Inc. 4.1 Market Segmentation In an era of dec reasing residential property values and relatively stable rates of personal income growth, Anywhere Remodeling, Inc. is foc using on two se gments of t he residential remodeling market: 1) Neighborhoods where homeowners have achieved success in t heir careers and have room in their budget for investment in their homes, but are not eager to incur a much higher mortgage payment by selling their house and 'buying up.' [Such targeted neighborhoods have housing stoc k with room to expand and are deemed to be worth t he upgrade expenditures.] 2) Run-down neighborhoods that have been targeted by c ommunity decision-makers for renewal. About 20% of Anywhere's overall volume consists of remodeling projects for businesses within the community areas being revitalized.
Table: Market Analysis Market Analysis 2008
2009
2010
2011
2012
Potential Customers Small growth Moderate growth
Growth 5% 7%
500,000 500,000
525,000 535,000
551,250 572,450
578,813 612,522
607,754 655,399
CAGR 5.00% 7.00%
Moderate - Large growth Large growth Total
10% 15% 9.45%
500,000 500,000 2,000,000
550,000 575,000 2,185,000
605,000 661,250 2,389,950
665,500 760,438 2,617,273
732,050 874,504 2,869,707
10.00% 15.00% 9.45%
Anywhere Remodeling, Inc. 4.2 Target Market Segment Strategy Anywhere Remodeling's targeted market groups were c hosen bec ause of the long-term potential for continued sales. Assuming high quality work and effective word-of-mouth marketing, t he t argeted, potent ially upgradeable, neighborhoods afford a c ontinuing supply of work to do. The business remodels, while providing a smaller portion of the firm's income, offer an important opportunity to build relationships and generate trust with business owners and managers who have homes in the targeted ‘upgradeable' homes.
4.3 Service Business Analysis As a whole, the building industry is a very fragmented industry. Despite large homebuilders, no single company has as much as a 2% market share. The remodeling industry is even more diluted with only a handful of companies in the nation showing annual sales in excess of $10 million. Under the standard definition, all remodelers fall into the category of a small business.
4.3.1 Competition and Buying Patterns The remodeling market is made up of potential customers who weigh three competing values: Price, Quality and Service. There is a saying that a remodeling company can deliver any two of those values. A large portion of the potential customers are asking for quality and service, and then go shopping for price. These customers are extremely difficult t o work for and make a
Anywhere Remodeling, Inc. 1. Anywhere Remodeling needs t o sell the company, not the price. 2. Anywhere has to sell its quality and service. The actual remodeling is like the razor, and the support, service, design and hand holding are the razor blades. We need to serve our customers with what they really need. The Yearly Total Sales chart summarizes an ambitious sales forecast. Anywhere expects sales to increase significantly from $750,000 last year.
5.1.1 Sales Forecast The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 chart. Total sales will increase substantially over the next several years.
Table: Sales Forecast Sales Forecast FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Sales Commercial
$131,791
$145,000
$165,000
$170,000
$180,000
Residential Other Total Sales
$1,188,614 $7,998 $1,328,403
$1,350,000 $1,903 $1,496,903
$1,500,000 $1,998 $1,666,998
$1,650,000 $2,098 $1,822,098
$1,800,000 $2,202 $1,982,202
Direct Cost of Sales Materials
FY 2009 $225,828
FY 2010 $254,473
FY 2011 $283,390
FY 2012 $309,757
FY 2013 $336,974
Sub Contractor Costs Permits & Licensing
$464,941 $3,385
$523,916 $3,554
$583,449 $3,732
$637,734 $3,919
$693,771 $4,115
Anywhere Remodeling, Inc.
Anywhere Remodeling, Inc. 5.2 Marketing Strategy The marketing strategy is the core of the main strategy: 1. 2. 3.
Emphasize quality and service. Build a relationship business- -t reat the customers like members of the family. Take care of the customers for the rest of their life.
5.3 Competitive Edge Anywhere Remodeling, Inc.'s competitive edge is its reputation in the community. Over the past five years, Anywhere has won a number of awards for quality and design, both nat ionally and locally. Its satisfied customer base continues to expand and spread the word.
5.4 Milestones The following table lists important program milestones, with dates and persons in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics.
Table: Milestones
Anywhere Remodeling, Inc. The key to the website strategy will be combining a very well designed front end, with a back end c apable of rec ording leads and proposal requests.
7.0 Management Summary Anywhere Remodeling is a company that desires to be of service to others. Its whole existence is keyed to helping people who have need t o improve the quality of t heir life. Anywhere encourages team work and cooperation in helping the customer. The company is very loyal to its employees and provides them with the security and satisfaction to know that they are the business and that without them the company would not exist.
7.1 Personnel Plan The Personnel Plan reflects the need to bolster our capabilities to match our positioning. Our total head-count should increase to 12 this first year, and to 17 by the third year. This reflects a ~5% growth per year.
Table: Personnel Personnel Plan Labor Prod. Manager Design Prod Mgr (office) S l ( l i d/d
)
FY 2009 $179,829 $37,839 $10,649
FY 2010 $179,829 $37,839 $10,649
FY 2011 $189,294 $39,831 $11,209
FY 2012 $199,257 $41,927 $11,799
FY 2013 $209,744 $44,134 $12,420
$9,281 $8 555
$9,281 $8 555
$9,770 $9 005
$10,284 $9 479
$10,825 $9 978
Anywhere Remodeling, Inc. · ·
·
A slow-growth economy, without major recession. There are no unforeseen c hanges in tec hnology t o make our services immediately obsolete (very unlikely). We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.
Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other
FY 2009 1 7.00%
FY 2010 2 7.00%
FY 2011 3 7.00%
FY 2012 4 7.00%
FY 2013 5 7.00%
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
Anywhere Remodeling, Inc. 8.2 Break-even Analysis The break-even analysis can be found below.
Table: Break-even Analysis
Anywhere Remodeling, Inc. 8.3 Projected Profit and Loss The most important assumption in the Projected Profit and Loss statement is the gross margin, which is supposed to increase, up quite a bit from the last year. The increase in gross margin is based on changing our sales mix due to increased target marketing based on 5% assumptions bet ween y ears. Month-by-month assumptions for profit and loss are included in the appendices.
Anywhere Remodeling, Inc. Table: Profit and Loss Pro Forma Profit and Loss FY 2009 $1,328,403 $715,885
FY 2010 $1,496,903 $805,135
FY 2011 $1,666,998 $895,541
FY 2012 $1,822,098 $978,094
FY 2013 $1,982,202 $1,063,327
Other Costs of Goods Total Cost of Sales
$0 $715,885
$0 $805,135
$0 $895,541
$0 $978,094
$0 $1,063,327
Gross Margin Gross Margin %
$612,517 46.11%
$691,768 46.21%
$771,457 46.28%
$844,004 46.32%
$918,875 46.36%
Expenses Payroll
$366,810
$421,654
$443,846
$467,206
$491,796
$11 ,89 0 $8,856 $13,757
$7, 023 $9,322 $8,122
$7, 393 $9,813 $8,550
$7, 782 $10,329 $9,000
$8, 191 $10,873 $9,473
$2,244 $2,364 $2,100
$2,362 $2,488 $2,211
$2,486 $2,619 $2,327
$2,617 $2,757 $2,449
$2,755 $2,902 $2,578
$65,729 $3,880 ($204)
$52,152 $3,082 ($215)
$54,897 $3,244 ($226)
$57,786 $3,415 ($238)
$60,828 $3,595 ($250)
Tool Repair/Replacement Computer/Hardware/Software Consultants Dues/Sub/Licenses/Royalties/Trade Assoc
$2,760 $8,602 $2,840
$2,905 $6,836 $2,990
$3,058 $7,196 $3,147
$3,219 $7,574 $3,313
$3,389 $7,973 $3,487
Corp & Business Taxes Legal Expenses Accou nti ng Expen ses
$2,104 $1,309 $2, 331
$2,214 $1,378 $2, 453
$2,331 $1,451 $2, 582
$2,454 $1,527 $2, 718
$2,583 $1,608 $2, 861
$14,520 $1,137
$15,284 $1,197
$16,089 $1,260
$16,935 $1,326
$17,827 $1,396
Sales Direct Cost of Sales
Adve rtisin g Depreciation Marketing Bad Debts Donations Entertainment 50% Employee Benefits Equipment Buy/Rental Interest/Bank Charges
Rent of Office/Warehouse Space Repairs/Maintenance
Anywhere Remodeling, Inc.
Anywhere Remodeling, Inc. 8.4 Projected Cash Flow The cash flow depends on assumptions for payment days and accounts receivable management. The projected 75-day collection days is critical, and it is also reasonable.
Anywhere Remodeling, Inc. Table: Cash Flow Pro Forma Cash Flow FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Cash from Operations Cash Sales Cash from Receivables
$332,101 $1,500,397
$374,226 $1,093,388
$416,749 $1,220,682
$455,524 $1,339,614
$495,551 $1,458,822
Subtotal Cash from Operati ons
$1,832,498
$1,467,614
$1,637,432
$1,795,138
$1,954,373
Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free)
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $1,832,498
$0 $1,467,614
$0 $1,637,432
$0 $1,795,138
$0 $1,954,373
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
$366,810 $948,152 $1,314,962
$421,654 $1,049,306 $1,470,960
$443,846 $1,152,871 $1,596,716
$467,206 $1,258,223 $1,725,429
$491,796 $1,365,979 $1,857,775
Add it io nal Cash Spen t Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing Other Liabilities Principal Repayment
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
Cash Received
Add it io nal Cash Recei ved
New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operati ons
Anywhere Remodeling, Inc. 8.5 Projected Balance Sheet The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations--as long as we can achieve our specific objectives.
Table: Balance Sheet Pro Forma Bal ance Sheet FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Current Assets Cash Accou nts Recei vabl e
$700,964 $23 0,9 04
$697,618 $26 0,1 93
$738,333 $28 9,7 60
$808,042 $31 6,7 19
$904,640 $34 4,5 49
Other Current Assets Total Current Assets
$31,380 $963,249
$31,380 $989,191
$31,380 $1,059,473
$31,380 $1,156,141
$31,380 $1,280,569
Long-term Assets Long-term Assets Accum ul ate d Dep recia ti on
$145,879 $65 ,73 5
$145,879 $75 ,05 7
$145,879 $84 ,87 0
$145,879 $95 ,19 9
$145,879 $10 6,0 72
$80,144 $1,043,393
$70,822 $1,060,013
$61,009 $1,120,482
$50,680 $1,206,821
$39,807 $1,320,376
Liabilities and Capital
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
Current Liabilities Accou nts Payab le Current Borrowing Other Current Liabilities
$87 ,23 9 $0 $0
$86 ,15 5 $0 $0
$95 ,52 7 $0 $0
$10 4,1 22 $0 $0
$11 3,0 02 $0 $0
Assets
Total Long-term Assets Total Assets
Anywhere Remodeling, Inc. Table: Ratios Ratio Anal ysis FY 2009 77.12%
FY 2010 12.68%
FY 2011 11.36%
FY 2012 9.30%
22. 13% 3.01%
24. 55% 2.96%
25. 86% 2.80%
26. 24% 2.60%
26. 09% 2.38%
11. 37% 25.23%
92.32% 7.68% 100.00%
93.32% 6.68% 1 00.00%
94.56% 5.44% 1 00.00%
95.80% 4.20% 1 00.00%
96.99% 3.01% 1 00.00%
76.82% 23.18% 100.00%
8.36% 0.00%
8.13% 0.00%
8.53% 0.00%
8.63% 0.00%
8.56% 0.00%
44.21% 12.47%
Total Liabilities Net Worth
8.36% 91.64%
8.13% 91.87%
8.53% 91.47%
8.63% 91.37%
8.56% 91.44%
56.68% 43.32%
Percent of Sal es Sales Gross Margin
100.00% 46.11%
100.00% 46.21%
100.00% 46.28%
100.00% 46.32%
100.00% 46.36%
100.00% 16.88%
26.96% 0.8 7% -0.97%
27.77% 0.8 7% 1.58%
28.42% 0.8 6% 4.09%
13.06% 0.0 0% 5.69%
13.02% 0.0 0% 7.04%
5.45% 0.2 3% 0.91%
Sales Growth Percent of Total Assets Accou nts Recei vabl e Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities
Sel li ng, General & Administrati ve Expenses Adve rtisin g Exp enses Profit Before Interest and Taxes Main Ratios Current
FY 2013 Industry Profi le 8.79% -2.88%
11.04
11.48
11.09
11.10
11.33
1.59
Quick Total Debt to Total Assets Pre-tax Return on Net Worth
11.04 8.36% -1.35%
11.48 8.13% 2.42%
11.09 8.53% 6.65%
11.10 8.63% 9.40%
11.33 8.56% 11.56%
0.57 59.20% 1.93%
Pre-tax Return on Assets
-1.24%
2.23%
6.08%
8.59%
10.57%
4.72%
Anywhere Remodeling, Inc. 8.7 Long-term Plan The long-term plan is shown in the Appendix.
Appendix Table: Sales Forecast Sales Forecast Dec
Feb
Mar
$3,699
$5,780
$ 11,098
$16,416
$ 20,116
$19,884
$ 16,647
$12,486
$9,249
$6,705
$6,474
$76,879 $151 $80,729
$77,746 $151 $83,677
$89,884 $151 $101,133
$96,243 $151 $112,810
$101,156 $151 $121,423
$99,711 $151 $119,746
$109,827 $151 $126,625
$111,850 $2,900 $127,236
$119,075 $3,587 $131,911
$116,301 $151 $123,157
$116,532 $151 $123,157
Jan $13,724
Feb $14,225
Mar $17,193
Apr $19,178
May $20,642
Jun $20,357
Jul $21,526
Aug $21,630
Sep $22,425
Oct $20,937
Nov $20,937
$26,879 $282 $484
$28,255 $282 $509
$29,287 $282 $527
$35,397 $282 $637
$39,484 $282 $711
$42,498 $282 $765
$41,911 $282 $754
$44,319 $282 $798
$44,533 $282 $802
$46,169 $282 $831
$43,105 $282 $776
$43,105 $282 $776
$377
$385
$393
$401
$409
$417
$425
$434
$443
$452
$461
$470
$530 $161 $41,769
$530 $161 $43,846
$530 $161 $45,406
$530 $161 $54,601
$530 $161 $60,754
$530 $161 $65,295
$530 $161 $64,421
$530 $161 $68,050
$530 $161 $68,381
$530 $161 $70,850
$530 $161 $66,252
$530 $161 $66,261
Sales Commercial
$3,237
Residential Other Total Sales
$73,410 $151 $76,798
Direct Cost of Sales Materials
Dec $13,056
Sub Contractor Costs Permits & Licensing Sales Costs w/commision Warranties Trash Other Subtotal Direct Cost of Sales
Jan
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Table: Personnel Personnel Plan Labor Prod. Manager Design
Dec $14,986 $3,153
Jan $14,986 $3,153
Feb $14,986 $3,153
Mar $14,986 $3,153
Apr $14,986 $3,153
May $14,986 $3,153
Jun $14,986 $3,153
Jul $14,986 $3,153
Aug $14,986 $3,153
Sep $14,985 $3,154
Oct $14,985 $3,154
Nov $14,985 $3,154
$887
$887
$887
$887
$887
$887
$887
$888
$888
$888
$888
$888
$773 $712 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
$773 $713 $3,555 $6,500
Total People
12
12
12
12
1
12
12
12
12
12
12
12
Total Payroll
$30,566
$30,567
$30,567
$30,567
$30,567
$30,567
$30,567
$30,568
$30,568
Prod Mgr (office) Sales (salaried/draw) Office Owners
$30,568
$30,568
$30,568
Page 1
Appendix Table: General Assumptions General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other
Dec 1 7.00%
Jan 2 7.00%
Feb 3 7.00%
Mar 4 7.00%
Apr 5 7.00%
May 6 7.00%
Jun 7 7.00%
Jul 8 7.00%
Aug 9 7.00%
Sep 10 7.00%
Oct 11 7.00%
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
10.00% 25.00% 0
Nov 12 7.00% 10.00% 25.00% 0
Page 2
Appendix Table: Profit and Loss Pro Forma Profit and Loss Sales Direct Cost of Sales
Dec $76,798 $41,769
Jan $80,729 $43,846
Feb $83,677 $45,406
Mar $101,133 $54,601
Apr $112,810 $60,754
May $121,423 $65,295
Jun $119,746 $64,421
Jul $126,625 $68,050
Aug $127,236 $68,381
Sep $131,911 $70,850
Oct $123,157 $66,252
Nov $123,157 $66,261
Other Costs of Goods Total Cost of Sales
$0 $41,769
$0 $43,846
$0 $45,406
$0 $54,601
$0 $60,754
$0 $65,295
$0 $64,421
$0 $68,050
$0 $68,381
$0 $70,850
$0 $66,252
$0 $66,261
Gross Margin Gross Margin %
$35,029 45.61%
$36,883 45.69%
$38,271 45.74%
$46,532 46.01%
$52,056 46.14%
$56,128 46.22%
$55,325 46.20%
$58,575 46.26%
$58,855 46.26%
$61,061 46.29%
$56,905 46.21%
$56,896 46.20%
Expenses Payroll
$30,566
$30,567
$30,567
$30,567
$30,567
$30,567
$30,567
$30,568
$30,568
$30,568
$30,568
$30,568
Advertising
$556
$612
$673
$740
$814
$895
$985
$1,084
$1,192
$1,311
$1,442
$1,586
Depreciation Marketing
$738 $643
$738 $707
$738 $778
$738 $856
$738 $942
$738 $1,036
$738 $1,140
$738 $1,254
$738 $1,379
$738 $1,517
$738 $1,669
$738 $1,836
Bad Debts Donations Entertainment 50%
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
$187 $197 $175
Employee Benefits Equipment Buy/Rental
$4,129 $244
$4,335 $256
$4,552 $269
$4,780 $282
$5,019 $296
$5,270 $311
$5,534 $327
$5,811 $343
$6,102 $360
$6,407 $378
$6,727 $397
$7,063 $417
Interest/Bank Charges
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
($17)
Tool Repair/Replacement Computer/Hardware/Software Consultants Dues/Sub/Licenses/Royalties/ Trade Assoc
$230 $541
$230 $568
$230 $596
$230 $626
$230 $657
$230 $690
$230 $724
$230 $760
$230 $798
$230 $838
$230 $880
$230 $924
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
$237
Corp & Business Taxes Legal Expenses Accounting Expenses
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$175 $109 $194
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
$1,210 $95 $780
Utilities Office Expenses Miscellaneous/Other
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
$77 $701 $382
Liability Insurance Vehicle Expenses & Insurance Liability Insurance for employees Vehicle Expenses & Insurance
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
$626 $866 $42 $337
Rent of Office/Warehouse Space Repairs/Maintenance Communications
Page 3
Appendix Insurance - General (#43)
15%
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
$85
Payroll Taxes
18%
$5,471
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$5,472
$49,578
$49,944
$50,334
$50,750
$51,194
$51,668
$52,176
$52,719
$53,298
$53,918
$54,582
$55,293
($14,549) ($13,811)
($13,061) ($12,323)
($12,062) ($11,324)
($4,217) ($3,479)
$862 $1,600
$4,460 $5,198
$3,150 $3,888
$5,856 $6,594
$5,557 $6,295
$7,143 $7,881
$2,323 $3,061
$1,603 $2,341
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
($14,549) -18.94%
($13,061) -16.18%
($12,062) -14.42%
($4,217) -4.17%
$862 0.76%
$4,460 3.67%
$3,150 2.63%
$5,856 4.62%
$5,557 4.37%
$7,143 5.42%
$2,323 1.89%
Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
$0 $0 $1,603 1.30%
Page 4
Appendix Table: Cash Flow Pro Forma Cash Flow Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Cash from Operations Cash Sales Cash from Receivables
$19,200 $294,000
$20,182 $294,000
$20,919 $177,719
$25,283 $59,171
$28,203 $61,726
$30,356 $69,740
$29,937 $80,521
$31,656 $88,053
$31,809 $90,396
$32,978 $92,561
$30,789 $95,213
$30,789 $97,297
Subtotal Cash from Operations
$313,200
$314,182
$198,638
$84,454
$89,928
$100,096
$110,457
$119,709
$122,205
$125,539
$126,002
$128,086
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Cash Received
Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free)
0.00%
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
New Long-term Liabilities
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets Sales of Long-term Assets
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $0
$0 $313,200
$0 $314,182
$0 $198,638
$0 $84,454
$0 $89,928
$0 $100,096
$0 $110,457
$0 $119,709
$0 $122,205
$0 $125,539
$0 $126,002
$0 $128,086
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
$30,566 $71,721 $102,288
$30,567 $60,124 $90,691
$30,567 $62,550 $93,117
$30,567 $64,755 $95,322
$30,567 $74,265 $104,832
$30,567 $80,810 $111,377
$30,567 $85,646 $116,213
$30,568 $85,430 $115,998
$30,568 $89,493 $120,061
$30,568 $90,475 $121,044
New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations
$30,568 $93,331 $123,899
$30,568 $89,552 $120,120
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Purchase Other Current Assets Purchase Long-term Assets Dividends
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Subtotal Cash Spent
$102,288
$90,691
$93,117
$95,322
$104,832
$111,377
$116,213
$115,998
$120,061
$121,044
$123,899
$120,120
Net Cash Flow Cash Balance
$210,912 $394,340
$ 223,491 $617,831
$ 105,522 $723,353
($10,868) $712,485
($14,904) $697,581
($11,281) $686,300
($5,756) $680,544
$3,710 $684,255
$2,144 $686,399
$4,495 $690,894
$2,103 $692,997
$7,967 $700,964
Page 5
Appendix Table: Balance Sheet Pro Forma Balance Sheet Assets
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Starting Balances
Curren t Assets Cash Accounts Receivable
$183,428 $735 ,000
$394,340 $498,59 9
$617,831 $265,14 5
$ 723,353 $150,18 4
$712,485 $166 ,863
$ 697,581 $189,74 4
$686,300 $211 ,071
$ 680,544 $220 ,360
$684,255 $227,27 6
$ 686,399 $232,30 7
$ 690,894 $238,67 9
$ 692,997 $235 ,834
$ 700,964 $230 ,904
Other Current Assets Total Current Assets
$31,380 $ 949 ,8 08
$31,380 $92 4,318
$31,380 $9 14,35 6
$31,380 $9 04,91 6
$31,380 $9 10 ,72 8
$31,380 $9 18,70 5
$31,380 $ 928 ,7 51
$31,380 $ 932 ,2 84
$31,380 $94 2,911
$31,380 $95 0,086
$31,380 $96 0,9 53
$31,380 $ 96 0,2 11
$31,380 $ 96 3,2 49
Long -term Assets Long-term Assets Accumulated Depr eciation
$145,879 $56,879
$145,879 $57,617
$145,879 $58,35 5
$145,879 $59,093
$145,879 $59,83 1
$145,879 $60,56 9
$145,879 $61,307
$145,879 $62,045
$145,879 $62,783
$145,879 $63,521
$145,879 $64,259
$145,879 $64,997
$145,879 $65,735
$89,000 $ 1,0 38 ,8 08
$88,262 $ 1,0 12 ,5 80
$87,524 $ 1,0 01 ,8 80
$86,786 $ 99 1,7 02
$86,048 $ 99 6,7 76
$85,310 $ 1,0 04 ,0 15
$84,572 $ 1,0 13 ,3 23
$83,834 $ 1,0 16 ,1 18
$83,096 $ 1,0 26 ,0 07
$82,358 $ 1,0 32 ,4 44
$81,620 $ 1,0 42 ,5 73
$80,882 $ 1,0 41 ,0 93
$80,144 $ 1,0 43 ,3 93
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Total Long-term Assets To ta l Asse ts Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities
$69,720 $0 $0
$58,041 $0 $0
$60,40 2 $0 $0
$62,286 $0 $0
$71,57 7 $0 $0
$77,95 5 $0 $0
$82,803 $0 $0
$82,448 $0 $0
$86,481 $0 $0
$87,360 $0 $0
$90,347 $0 $0
$86,543 $0 $0
$87,239 $0 $0
Subtotal Current Liabilities
$69,720
$58,041
$60,402
$62,286
$71,577
$77,955
$82,803
$82,448
$86,481
$87,360
$90,347
$86,543
$87,239
Long-term Liabilities Total Liabilities Paid-in Capital
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$69,720
$58,041
$60,402
$62,286
$71,577
$77,955
$82,803
$82,448
$86,481
$87,360
$0 $90,347
$0 $86,543
$0 $87,239
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
Retained Earnings
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
$949,088
Earnings Total Capital
$0 $969,088
($14,549) $954,539
($27,610) $941,478
( $39,672) $929,416
($43,889) $925,199
( $43,027) $926,061
($38,567) $930,521
( $35,418) $933,670
($29,562) $939,526
( $24,004) $945,084
( $16,861) $952,227
( $14,538) $954,550
( $12,935) $956,153
$1,0 38,808
$1,012,5 80
$1,0 01,880
$991,702
$996,776
$1,0 04,015
$1,0 13,323
$1,0 16,118
$1,026,0 07
$1,032,4 44
$1,042,5 73
$1,041,0 93
$1,043,3 93
$969,088
$954,539
$941,478
$929,416
$925,199
$926,061
$930,521
$933,670
$939,526
$945,084
$952,227
$954,550
$956,153
Total Liabil itie s and Capital Net Worth
Page 6
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